What FIIS knows about India that we don’t know? Let us understand their negativity.

4^th November 2025

What FIIS knows about India that we don’t know? Let us understand their negativity.

Dear Fellow Investors,

Namaste! In October Nifty made an all-time high after about a year of consolidations. Notwithstanding the market movements – one thing is clearly visible that FIIs are selling. They are not in the mood to buy. While there are various theories which says USA based DEEP STATE is making FIIS sell so that India signs the TRADE DEAL. We would not like to speculate on something for which we can’t prove. We will share some of the facts. 

GST collections: - 

GST collection was the highest in April At Rs.2.37 Trillion in April 2025. Since then it has come down to Rs.2.01 trillion ( May), Rs.1.85 Trillion ( June), Rs.1.96 trillion ( July), Rs.1.86 Trillion ( August). Rs.1.89 trillion ( September) and Rs.1.96 Trillion ( October). 

From April to September – we had seen a consistent downtrend in the GST collection. It indicates the slowing economy. 

October is the month where we had SUPER SPENDING due to FESTIVAL MOODS. Till the GST collection is lower than the APRIL – 2025. One may argue that this collection is lower due to the lower GST. Agreed. But the TREND is negative. We have to see the TREND in the GST collection in coming months to assess the TREND reversal or not. 

From FIIs perspective this is NEGATIVE. 

Populism:- 

Modi ji distributed Rs.10000 per women in Bihar for 75 lakh women ahead of the elections in September 2025. Tons of FREE SCHEMES are going on in various states. Ladali Behan and many such. This is a clear negative step of the government from an economic perspective. This is a DRAG on the economy. 

If the CONGRESS and AAP do the same – they are blamed publically. MODI Ji doing the same is not acceptable. Election is won on the FREE BEES rather than economic issues. 

This is not going well with the FIIS. 

Artificial Intelligence: - 

We have no AI story in India. The biggest worry should be – AI led problems in India. 

Recently TCS / ORACLE and many other companies have removed their staff. Top companies are changing their work force dynamics to suit the AI needs of the time. 

The above is for the educated staff. What about the majority of the non-education labour force? Those who are working manually will need food / housing / medical facilities. Now, they are not getting the JOB or WORK they can do. How to FEED THEM? 

As per the last reports – the government is providing free food to the 80 crore people. 

If AI comes into the PLAY – which will come for sure – how will the economy grow? 

The FIIS view is very practical and reflects the ground level realities. This means that the ECONOMY may get stuck at 6-7% growth rate due to above. 

Valuations: - 

The basic lesson in the investments is to buy cheap and sell higher. Now, when the valuations are at the higher levels – the game becomes finding a bigger fool than you to make profit. Say you have bought a company at 50 plus p/e – most of the good companies are trading at 50 plus p/e. Now, where is the scope for making more money at that valuation given the situations of the Economy. 

Capital Gains Tax: -

Many countries, including major financial centres, do not impose a capital gains tax on FIIs or non-resident investors on stock market investments. Examples include Singapore, Hong Kong SAR, UAE, Cayman Islands, Bermuda, Bahrain, and New Zealand. This is often done to attract foreign capital.

In India they have to pay the TAX. This is also one of the reasons for their indifference to the Indian market. 

How do we see the above factors? 

The above are the TRUTH and not opinion. If you are a big investor like FIIs – those factors matter more than anything else. So, if they are selling – it is natural for them. 

However, there is a silver line in the above selling. Their continuous selling has brought down their stakes in India to very low levels.  

If you see the figures – Indian stocks are owned as under.

1.   40.9% by promoters

2.   10% by government

3.   10% by Mutual funds. 

4.   9.8% by Retail investors. 

5.   6.6% by other investors. 

6.   5.3% by Banks/Fi and Insurance companies.

7.   17.4% by FPIs. 

So, FIIs holding is just 17.4% as of now. 

If there is a positive change in any of the above factors – their investments can flow back to India. Chances of the same are more. 

What NEXT? 

Focus on the company specific stories for your wealth creations rather than the specific BIG PLAYERS attitude towards the market. 

FIIs have WORLD as a MARKET. We have INDIA as a MARKET. As long as they have better opportunities elsewhere – they will definitely go over there.  

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Learn a Lesson. Live with Passion & Invest with Reason.

 

Hitesh Parikh.